Following the decline of ex-China hot dip galvanized (HDG) prices last week affected by falling HRC futures prices, this week HDG prices have remained mainly stable, while sentiments in the market have improved amid the rises in futures prices lately and the anticipated demand recovery.
Offers from mills this week are at $830/mt FOB for late June shipment, moving sideways compared to March 23 on average. At the same time, reference deal prices for ex-China HDG have been heard at $790-810/mt, FOB, compared to $790/mt FOB last week. “Import iron ore prices have seen a continuous rising trend, exerting a positive impact on the HDG market from the cost side, though the demand from downstream users needs more time to improve,” an international trader said.
During the given week, HDG prices in the Chinese domestic market have seen declines with demand not improving to the level that market players had expected. However, according to sources, home appliance producers have received more orders amid the stimulus policy and the improved situation in the real estate industry, which will bolster HDG prices in the near future.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have lost RMB 20/mt ($2.9/mt) compared to March 23, standing at RMB 4,930/mt ($717/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 30, HRC futures prices at the Shanghai Future Exchange are standing at RMB 4,274/mt (621/mt), rising by RMB 53/mt ($7.7/mt) or 1.26 percent since March 23.
$1 = RMB 6.8886
